Millions of children will not receive the full value of the Child Tax Credit next year. In 2025, an estimated 17 million children in low-income families will not receive the full value of the Child Tax Credit (CTC), according the latest Tax Policy Center analysis. TPC’s Elaine Maag explains that current rules require families to earn at least $2,500 to qualify for any CTC beyond taxes owed, leaving out one out of four children age 17 and under from qualifying for the full benefit. The CTC also factors into the looming expirations of the 2017 Tax Cuts and Jobs Act (TCJA). After 2025, the maximum credit available will decrease from $2,000 per child to $1,000. Maag outlines options Congress could use to reduce exclusions and improve health and economic outcomes for children as TCJA discussions move forward.
New Mexico’s oil savings eclipse personal income tax revenue. For the first time, New Mexico’s earnings from oil-funded investments will surpass revenue from personal income taxes. According to the Associated Press, income from the state’s two permanent funds and treasury accounts will reach $2.1 billion in the next fiscal year. The windfall has enabled the state to expand programs like free education and childcare.
Boston’s commercial property tax plan fails in the state senate. Boston Mayor Michelle Wu’s (D) plan to temporarily increase commercial property tax rates to offset a tax spike for homeowners has failed in the state Senate. The proposal aimed to limit the average 2025 residential property tax increase to $289, compared to a projected $573 hike. Senate leaders cited revised projections showing a less severe tax hike as no longer justifying altering Massachusetts’ property tax framework.
UN takes another step toward a global tax cooperation framework. The UN General Assembly has established an intergovernmental committee to negotiate a framework for international tax cooperation. According to the International Institute for Sustainable Development (IISD), the resolution, introduced by Nigeria, received broad support despite objections from the US and European Union about decision-making processes. Advocates see the initiative as a historic step toward a more equitable global tax system, while others warn that fragmentation and lack of consensus could undermine its effectiveness. The Organisation for Economic Co-operation and Development (OECD) has developed its own framework, but critics of that effort argue the OECD proposal is too skewed toward the preferences of more developed economies.
For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky.
